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tv   The Pulse  Bloomberg  June 11, 2014 4:00am-6:01am EDT

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america was going to come along opec was nonsense. global demand growth over the next 10-20 years is going to be sufficiently robust. there is still in need for an awful lot of oil from the middle east. some of the opec countries have >> flying high no more, emirates lost their market share to scraps an order for the airbus domestic suppliers. a350. opec is still going to be the major residual supplier for many we are watching lufthansa. years to come. shares slump on a profit >> talk to me about iraq. warning. the battle for control over a couple of years ago, there opec. oil ministers are indiana as the were talking about getting their output to 9 million barrels per fight heats up. day. we are live at its headquarters. everybody has seen these images from also -- mosul. taxi drivers hit the streets. .0,000 protest against the uber overrun by insurgents. this them and we will see more mean we- does that we are live on the scene. will see more supply disruption? various officials have told
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good morning. welcome. us that the production and get you're watching "the pulse." to 12 million barrels per day or some big figure. we are here in london. but for all sorts of reasons i am guy johnson. concerning the security a shoe in for the world cup. situation, the fact that the theon is autonomous and we are going to take a look at the business behind football ear and how they get their other disturbances in the country, there is not a standard legal framework -- it is hard gear on the industry's hottest enough to get production up. names. plus, cheers to cachaka. the booze could become a the biggest problem is how do favorite at this year's world you move the oil out of the cup. details next. country to get to export a little later in the hour. markets? the situation in and around huge barrier to first let's get to our top story. the opec nations are meeting today in vienna to discuss a increasing exports from the collective production limit. north. >> let's talk about who will be asy are expected to keep it the next secretary general of opec. the current term was up two it is now. years ago, they're looking for a ryan chilcote is on the ground. successor. we have this nigerian candidate. what else is going on? which you be good for the job? they'reondering if is they just can't looking quite as hard as some pump the oil fast enough. people think. about theirned in "the financial times," there
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ability to meet demand going was an advertisement by the forward. very different problem than they had six months ago when the nigerian government. >> a little promotion, lobbying. saudi's were being told, perhaps you could take some oil off the >> she is the hillary clinton of table, reduce your exports. they were concerned with all of opec. is she running, issue not running? that american shale oil coming to market that the market might for opec.ry unusual be flooded. that is not the issue. good problem to have? people do not usually run for the job. asi have been describing it demand improving is good but the real issue why they are a bit of a mexican standoff concerned about meeting demand because they cannot agree on one going forward is disappointment another's candidate. in theory, having a nigerian candidate, a good thing? >> in theory, it is a good on the supply side. six months ago they thought that places like iraq, libya, iran thing. not a middle east candidate would be able to up their game eliminates the middle east tensions. and the reality is they haven't. is ahe nigerian minister starting with iraq, very much in controversial character. at the ministerial meeting this play today because of mosul morning, and the public session, a demonstrator who gained access to the meeting denounced her falling to insurgents. loudly, shouted in front of her really unprecedented violence and in front of everybody, for the last five years since the u.s. pulled out. even before that. denouncing her as not being fit for her post. he described her as a thief.
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there is a tanker in the run aroundnalist mediterranean called united leadership that loaded up with kurdish oil. like mad. you do not normally hear protesters. >> i can remember it happening they just can't offload it. that is part of the issue. before. united leadership, not really. the man was obviously led away. you have the federal government it was a peaceful protest. of iraq, you have the kurds he was talking loudly. doing their own thing. not making physical threats. because of that animosity, that is a symbol of the fact because of their on ability to that whatever the issues may be, agree, not as much oil from iraq she is a controversial figure and she may be too controversial for opec. >> we will have to leave it itself is coming to market. then you have all the violence. there. they were already blowing up the that is the view from the head pipelines. it is a topic here. of analysis from lloyd's list people concerned that iraq may intelligence. not be able to patch up its he has been coming year for two decades. really interesting. pipelines as quickly as thought. >> we will wrap this section up we spoke with the oil minister from uae yesterday. with a quick look at what is happening with the pound. listen to what he had to say. the u.k. unemployment rate has dipped to six point six percent. >> we hope that the incident in the output gap has been squeezed and squeezed. iraq is going to be controlled area -- controlled. we hope that the violence is the pound is reacting positively, as you can see.
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reduced. you are pricing in the possibility of an earlier rate hike. reservewe have an off wages are not keeping up. from the rest of the member that is the political story. countries to overcome. we will take a break. ♪ impact for see a major on the production. >> libya remains a problem as well. output at about 1/10 of what it could be. they could produce as much as 1.5 million but infighting is meaning that that oil isn't getting out of the port. iran is still blocked out of the international oil market. we have the sanctions relief deadline looming in july. everybody thought iranian oil might be able to come to market, that they might be able to find some kind of resolution. of course, no one really knows when that is going to end now. that is also holding up opec's supply. >> let's talk about the leader of -- for the last couple of
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years, we have been talking about this. any sense that the story is firming of it? >> we have a new name. destiny, she is nigeria's oil minister, the first female oil minister in opec. she joined a couple years ago. the problem of course is that al buttrey is the secretary-general. he is 74 years old. his term expired two years ago and they haven't been able to find a successor. unablee three countries to come to some kind of consensus, a little bit like a mexican standoff. the good the bad and the ugly. each of those countries put candidate.ountr in theory a candidate from nigeria would be a good thing. she would be delighted with the prospect of the job. we caught up with her yesterday.
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>> frankly, that would be a privilege. however i am not the secretary-general of opec. it is not on the agenda at this point in time. scenes, we are being told by opec ministers, they are not sure about her credentials. the secretary-general is supposed to be the public face of opec. having a woman be the first secretary-general would be very helpful for the cartel but they also need to build consensus. it is not clear that she has that kind of credibility amongst all of the opec states to build consensus when they need to do difficult things like cut back and deny themselves oil revenue. it looks like we are going to see our buttrey around for at >> good morning. least another six months. >> thank you very much indeed. welcome back. ryan chilcote joining us from it is time for the energy top outside opec headquarters in vienna. headlines. let's go from oil to world production of bio diesel automobiles. is expected to climb to record
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this year. standoff between taxis and output from brazil is expected to surge. comprised of car sharing services is stopping traffic today as more than 300,000 taxi and limo drivers protest against uber. processed vegetable oil. acceptns are willing to olivia sterns is in london with the details. higher energy bills to protect you have been speaking to the london black cab the the environment. president obama is going to representative. what is the plan for later require new rules to reduce carbon emissions. today? this as ahouse sees >> they are planning to cause chaos. the plan is for several thousand way to reduce energy emissions by 30% by 2020. rivals to show up here and at here is food for thought. upd and heinz are teaming parliament square. by drivinge chaos for auto parts. around in circles and essentially cause gridlock. they are very angry. they say that uber is operating heinz produces a lot of waste. as an illegal service. the byproducts are being shipped it is not entirely true. uber drivers are licensed. they areue is that to fort facilities where they're being processed into small dry makees that can be used to operating as if they had a meter and there is legislation making cupholders and other things. ♪ it difficult and expensive for the black cabs to earn the right
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to use these meters. they are saying if they were operating as meters, they wouldn't have a grudge. uber came out this morning saying that black taxis will be a new option that you can order from uber. as you said, i was speaking to the head of the london taxi drivers association. here is what he had to say. london, i have been threatened with arrest. 10,000 taxi drivers are being threatened with arrest for driving on their own streets. is that the sword of power that uber has? is this the amount of money that it buys? what is going on? >> he is very upset. this $17 billion valuation is what is biting uber influence. i pointed out that this is a start and this valuation is very new. perhaps it was consumer demand
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that led to the growing valuation. he said this is not about uber. this is about transport for london. black taxi drivers to jump through all sorts of hoops. to earn several years the right to be a public taxi. there are all sorts of things you need to do to keep that license. uber is operating on a different playing field. >> thank you very much indeed. go, what doesou it look like now? are people anticipating -- are there any cabbies there yet? >> there are no cabs here yet. the protest is expected to start at 2:00 p.m. other cities, madrid, milan, paris, some protests are already underway. this is sort of a united front. the issue here in london is about whether or not drivers are operating illegal as a taxi meter.
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heart ofly gets to the what is going on in european economies right now. protest against a disruptive technology in what is a very heavily regulated industry. that is why you are seeing it pop up in all kinds of countries in europe. europe is not a huge market for uber right now. only about 20 cities in europe but it is important going forward. they see it as a huge opportunity. i am sure you have tried to get a taxicab in paris. it is very difficult. there is huge room for uber to come in and innovate. uber says they are not concerned about the protest today. the u.k. head of uber said this isn't changing their valuation in any way. they said they are going to continue to plan. they came out this morning saving they are going to offer a black cab option. it will be interesting into
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seeing whether that translates into fewer drivers showing up today. a lot of drivers have been leaving the black cab industry. we will see what happens. >> good morning, everybody. we had a statement coming out of the institute of directors. they are a business lobby group welcome back. in the u.k. they said the cabdrivers will you are watching "the pulse." i'm guy johnson. let me get you up to speed with not be able to prevent the top headlines. opec nations are meeting today technological innovation anymore to discuss a collective then the machine breakers of the production limit. 19th century could stop the a rock's oil minister has been spread of the power loom. talking to bloomberg about the there does seem to be the impact of oil production on his business community backing this. country. production, all our vily regulated exports from the south come in industry. this is a paperless payment the south is very safe -- south, system. the south is a very safe area. in london, you still have to pay with cash to get in a black cab. the advantage of taking a black cab is that you have those >> u.k. unemployment has fallen special lanes. to the lowest level in more than everyone is saying there is room in the market for the two of five years. the jobless rate jumped --
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them. drivers ifondon taxi talked to 6.6%. they are losing any business to uber. they said, no. this is about transport for the bank of england will keep interest rates at a record low. london. >> thank you very much indeed, until the slack in the labor olivia sterns. market is used up. she will be keeping us up to that is happening rather speed as the taxi drivers get quickly. prepared to demonstrate against uber. the world economy will expand let's go from cars to planes. airbus shares down. 2.8% this year. back in january, the projection emirates pull the plug on a purchase of a350. was 3.2%. the aircraft is the new widebody the world cup kicks off tomorrow in brazil. a's reputation remains very that airbus is pushing out the door. we are waiting to see it in service with qatar. much on the line. it is battling bribery it is going to be interesting to winningons over qatar's see what the long-term story is. let's get a little bit of news bid to host the games in 2022. from lufthansa as well. it has its operating profit our next guest is helping lead the fight against global forecast of the year and next year. corruption. she joins us now from rome for shares down on that. an exclusive interview. good morning. significant progress made in a few other factors in the mix. let's try and bring it all fighting graft over the last few together. chris jasper joins us now. years.
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he is having a busy morning. the headlines are still filled let's start off with tim clark with talk of bribery and pulling the plug on the 300 50's. corruption. unproven at this stage, but he has never been particularly nevertheless surrounding one of comfortable with the 350. the most high profile organizations on the planet, he has always had an issue with fifa. weight and other issues. how much progress do you feel you are making given that we was this inevitable? >> tim clark pushes the design still have these allegations on the front pages? >> i believe that we should not of these very large aircraft. be discouraged by these major emirates is the largest operator of widebody's in the world. huge flaws of the system. customer for the a 380. i believe they should just it still came as a big surprise encourage us to see that we are ,aking good, getting together this morning to see him cancel such a large order. 2019, theuntil and trying to find a solution to specific ways that delivery cycle. corruption is manifesting itself. it is not a disaster for airbus the fact that you have corruption in the g-20 agenda, is certainlybut it who gather together 80% of the world's gdp and are committed to going to undermine spirits there. it raises that question that we work together in very specific have already seen over whether ways with very effective tools, i think that gives us hope that the different variants are going we will hear less and less to of of these type of
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to hit the right sweet spots to buy this plane. .> it is a very wide speed spot incidents. we should strengthen the efforts you take in the whole range of because they seem to not be aircraft from the smaller going away. >> give us a sense of the scale midsizeds to the of the progress that has been made. where have we come from and 777's. where are we now? say that theve to you wonder if it is trying to do too much. >> we have to think about where this plane came from. kind of discussions and the kind dreamlineroduced the of agreements and commitments that you are having in the g-20 , the 787 intended to be a real are really to be praised. members agreed to be called into workhorse at the lower end of action together to follow the widebody market. airbus was going to come out questions like bribery, defining with a similar plane, but the bribery as a crime, which was line said, we want not the case before. something bigger. look at very specific aspects they are beginning to overlap with the bowling 777. of the procurement system, which are a very high-risk sector in he loves it and he is the first which things happen. whicher for the 777x to look at the beneficial ownership, to look at solicitation. everyone seems to be falling in love with already. i think we can make progress when we talk about corruption, on the 380, he is talking
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as long as we develop a strong framework to build within and we agreed what are the rules of the game for all these economies. about tim clark pushing him hard this was not the case before the g-20 gathered together. to re-engine the 380. this is important because the i thought they would stretch it first. prospects for the world economy he is also saying now apparently are not so great. in manyets are tight may not 330 neo countries. we really need to get together to limit the damage that happen. corruption can make to the public and to the private sector is a lot that they are participation in the world thinking about. economy. >> it is. airbus wants to make a success i think that this is of the a 380. strengthening the roles, trying we see a lot of them flying into to have an even implementation, london but they are not that thick on the ground elsewhere. enforcement, capacity. it needs to prolong the life of all of these elements are that project. putting together a very powerful action plan for the g-20 to deal if tim clark says he wants a new engine, he is probably going to with these issues in a collective manner. get a new engine. he has shown today what happens of this corruption has an if he doesn't quite get what he wants. >> 330? international feature that makes it so difficult to tackle. >> there seems to be a clear has beench progress
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market for the 330. made thus far? obviously it is a much older i'm not talking about in terms of policy formulation, but on plane. the ground reducing the impact you can trace its origins way that corruption is having. back. a much progress do you feel we the market we are looking at is are making? >> we can give you several rather fragmented. possibly some carriers in the u.s. are looking at low-cost examples, but the fact that long-haul. russia joined the anti-bribery it is not at the cutting edge of convention and that has the very same roles that they have what airbus might want to do in tackled -- rules that they have terms of technology. i would be surprised if they tackled is very important. don't go ahead. >> that is the rumor. went through procurement they had huge success with the process that is taking millions 320 neo. for the health institutions to buy medicines. we will talk about left on the later. thank you very much indeed. you have many and many of these take a break. examples all around the g-20 we are back in a couple of minutes. ♪ countries that i will month have time to share with you. but i'm sure that these collective -- this collective will has helped put the system in place. >> presuming way, it gets harder it's a and harder. the easy fruit is gathered
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early. the higher fruit is harder to get to. those who are conducting these operations will get more innovative and creative in the ways that they do it. >> you are completely right. we are always trying to catch up with reality. we need to do it together. it does not mean anything if you have one country, like the u.s., who has a very strong procurement system, if they're going to have loopholes everywhere around the world. it does not make sense if you do not have a comprehensive package that not only looks at what happens at the domestic level, but also tracks the financing and the money laundering and the tax issues. features need to be addressed at a global level. but we are really making progress, even at the psychology
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of the kind of issues we look at the international levels. the kind of instruments the criminal use and the kinds of tools we need to address them. would not be discouraged. i think it is true that the main scandal we have faced in many , the undermining of democratic processes, are to be kept in mind. but we have made progress in many issues that we are addressing at the g-20 and at this conference. >> a pleasure to speak with you. thank you very much indeed. >> thank you. >> but take a look at how european markets are trading. caroline hyde has the details. >> it is generally in the rat across the board. europe -- in the red across the board.
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countries, feel they might not do as well as previously forecast. they're concerned about valuations. we are at record highs in the united states. many look at the u.s. economy, >> welcome back. it is still growing at cry a you are watching "the pulse." pace. housing prices still rising. the world bank may be a little uber faces its biggest protest yet here in europe. bit behind the curve. people are not too worried about that. more than 30,000 drivers from london to milan to madrid plan for discount. we have unemployment at a five-year low in the u.k.. to block roads and strike today since not been this low demanding regulators apply tougher rules on the car sharing january 2 thousand nine. we have the pound trading a -- or taxi at, we should call little bit higher. many believe that this will it. force our carney's hand. joining us now is nicolas in paris. he is a founder of a ridesharing community. reigningave to have a good morning to you. in of stimulus further after the anticipated? should we be thinking about this could there be a rate hike? day of when we reflect on that is what everyone is terrified about -- should you be how good european taxis are and
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how we should be protecting a mortgage holder, that is. them, or should we be saying, here is an industry that is overregulated, needs a little italy coming down. bit of disruption and therefore the united states rising once what is uber doing is good. again. the u.s. selling debt later how should we think about today? is really what today. many feeling that we will still see growth in the united states and we will still see a reigning interesting about the phenomenon in of stimulus there. we are seeing today is the speed of change. stocks up by almost 0.5% what the taxis are protesting about, they are across-the-board. protesting about uber but also nearly every single industry group is trading lower. one outlier is health care. this very fast change in the look at one quick industry. what is interesting is the scale of the phenomenon which today we of the key movers. i do want to point out deutsche called ridesharing. phenomenon -- there are two lufthansa, this is the worst day for the stock and 13 years, by forms of ridesharing. almost 15%. it has a profit warning. there is what uber is doing, which is very much short distance. andit will be lower in 2014 hailing at a consumer 2015. car with a mobile phone. strike is eating and at their bottom line and is weaker it it is about professional drivers doing that for a profit. than expected passenger rates.
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it is very much in the highly back to you. >> thank you very much indeed. regulated taxi industry. you have a number form of , a brazilian booze ridesharing which is what other cars are doing, which is very much about long-distance travel. it is about regular drivers that could become a favorite at offering seats in their car when this year's world cup. they travel between cities. join us on the road to rio after in a way, that is less prone to this short break. regulations because it is about and we will continue the car sharing and the driver is conversation surrounding the not making a profit. football bribery allegations overshadowing fifa. >> but regulation is the critical thing here. we will also talk about the big sponsors. both have regulatory ♪ implications. what happens if there are some accidents in both cases? all these issues can come to the fore. is it a problem that the industry is not keeping up or that regulators are not keeping up? -- theyfor taxi drivers have invested an awful lot, but nevertheless these guys are flexible and they can probably figure out a way of moving this forward.
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on the other hand, the regulators tend to move much more slowly. where is the maximum point of tension? what we see today essentially, you are right, regulators tend to move pretty slowly. again, what is pretty phenomenal in what we see today is if you think back three years ago, no one was using uber. within three years, we get to a scale where today you have uber in pretty much every city in europe and the u.s. overblah car is carrying one million people every month. i think regulators cannot keep up with the pace of change. what they should do especially in highly regulated environments is really take the consumer angle. it is trying to understand what the consumer is really wanting to do.
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the you really understand different forms of ridesharing we see in the market and regulate what needs to be regulated. i think eventually we will see more regulation in this space but it is natural to see these tensions initially. lot ofpe has a industries that are overregulated, that are closed shops, that don't allow the flexibilities that the european economy needs. that is one of the critical questions. nicolas, we have to leave it there. very nice to see you. we are going to take a break. we are going to show you the big business behind football boost. we will go that in a couple of minutes when we come back right here on "the pulse." ♪
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>> welcome back. you are watching "the pulse. the world cup could be the ticket. cachaça could be making a comeback. erik schatzker takes us from the field to the first product. he also sits down for a little .it of a taste test >> i drink it twice a week. when it is raining and when it is not raining. i was born here and i make the best cachaça in brazil. >> it is made from 100% sugarcane.
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energy.cane is it is energy for the body. people.s for all the it is very good. it has a honey like quality to it. it is not a stock hollow. >> the beverage is running in my blood. i jinx all of the drinks. i love the beverage. exporta is the main beverage.
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mexico exports 20 times as much tequila. many people for the first time are going to taste cachaça here. >> it had an image problem in america. sntil 2012, american' classified it as brazilian rum. >> welcome back. it is caroline hyde. let's get straight to your accent check. >> to make rum you let molasses the stoxx 600 down. most industry groups falling. ferment. ferment theaça, you it is a day for particular stories, particular stock movers. we have the world bank coming sugarcane juice. when it is fermented, you have out lowering growth prospects for this year not only in the 12%. >> now, the u.s. recognizes united states but japan, brazil, russia, china. cachaça in a distinct spirit to the market doesn't seem too worried. what it is worried about is brazil decided to single stock names. we see france trading lower, ftse, spain as well. recognize tennessee whiskey and american bourbon. let's dig into the dax. the flavor is improved, the
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lufthansa, we see a profit warning from them. similar concerns in france. smoothness. i will be back in a moment. our places where we .ge the cachaça i raised area cattle here for a long time before. it is no good dealing with milk. cachaça is better. >> it is very good. tough assignment for erik there, checking out the booze. the world cup kicks off tomorrow. brazil has not been out -- without controversy. about lots ofs things. you have the current allegations surrounding the 2022 bid. that story surrounding fifa is
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very much gaining steam. michael fertik is a pioneer in online reputation management. let's start off. we want to talk about brazil. every time you get a big sporting event, london, olympics , much concern about whether things are going to be ready. you send bulk -- the first kick in the football starts, it goes away. rightt is exactly the point. the soccer playing level is going to be really high. people are excited about the teams. the fans, the people of the world, are not going to care about the quality of the seating or the ticket sales. it will be in the years to come that the criticism happens. there is a stadium that has been built in the middle of nowhere
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that will probably turn decrepit after that until the state takes it over and really invests. about brazil is going to go away. as the dross about athens went away overtime. the level of play will be very high. it will be a great celebration of soccer, of teams, of the world. that will go away. >> what will not go away? the fifa story surrounding qatar. >> i will be uncharacteristically harsh in my assessment. seth blatter to resign. he is the source of a lot of the corruption problem in fifa. >> i don't think the problem is one man. i'd --s not one man, but i don't think it can be solved with him there. allegations of corruption have followed him for years. even since his election.
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even in the last election, he swore up and down that he would not stand for reelection. will stand for reelection. he is trying to restore his own reputation and the reputation of fifa. he is forgetting the fact that he is getting in the way. he also smells like a bit of a fever, i'm afraid to say. he has let it leak that he is paid $1 million. it looks like he is paid closer >> welcome back. you are watching "the pulse." to $6 million. i am guy johnson. we are just getting data coming he is distinguishing between out of the u.k. relating to salary and bonus. that just sounds misleading. hence he comes out -- then employment. u.k. jobless claims falling 27,000, slightly better than comes out swinging against the allegations against fifa in the qatar vote. expected. that takes the unemployment rate he said those allegations stem 6.6%. the estimate was 6.7%. from racism. fifa stands for football and slightly better. soccer. he has done a good job promoting the mission of soccer. whether he is really guilty of this or not, it is time to get we have moved off of forward fresh blood so that fifa can
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move on. corruption allegation guidance to a certain extent but the pound is not reacting a great deal. is bad and it will be bad for the sponsors. that is the cable rate at the for billion dollars of revenue. moment. it may refresh in a moment. -- $4 billion revenue. >> the sponsors say they would 1.6764 is where we are trading. i want you take you back to the like an investigation. uber story. we have been getting some i do you handle it if you're the statements coming through from boss of emirates, one of the big the metropolitan police this morning. concernedn a little sponsors? a serious,me to have about the taxi demonstrations taking place in central london. it set some conditions vis-a-vis formal investigation by a government body. that demonstration. the fbi's looking into it is saying the protest is allegations. confined to the area around not an internal investigation. whitehall and parliament. an extra no investigation -- an if the area gets too congested, extern all investigation. they will prevent further taxis from entering the demonstration if you are anheuser-busch or coca-cola, i think that is what and they can only take place handsed to get the clean within a one-hour time window and that is between 2:00 and 3:00 today. time for this organization. it is an unhappy moment for fifa that was an e-mail statement a . it is getting in the way of its little bit earlier. any persons in violation may be own mission. seth blatter is getting in the liable to arrest according to 's mission.
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scotland yard. let's bring you up to speed with his colleagues are calling for the same thing. some of the bloomberg top when you are faced by colleagues headlines this morning. calling for your resignation am has cut itsnk a it is time to have a global growth forecast on weaker reassessment of yourself. outlook for the u.s., russia and i am with that support. china. the world economy will expand unfortunately, i don't like 2.8% this year. saying things like that. i like to stay positive. back in january, the projection but it is time to move on from seth blatter. was 3.2%. london investment bankers at >> it has been very nice to see you. firms including deutsche, goldman sachs, etc. get bonuses we're going to take a break. back in a couple of minutes. 30% higher than their ♪ counterparts at smaller rivals. this is according to a new survey. it says managing directors typically receive bonuses of 400,000 pounds and base salaries of 275,000 pounds. opec nations are meeting today in vienna to discuss a production limit. countries representing 94% of the output say they are pleased with supply and demand in global oil markets. 's oilke to the uae
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minister. >> most of the countries are in the process of growing. arabiawait and saudi have a very nice and healthy between production. >> the view from abu dhabi. let's set our attention to retail now. zara suspected a rare drop in profits. here with more on the european clothing giants is caroline hyde. that intro is slightly disingenuous in my mind. we are talking about profits and sales, two very different data. the sales line looks all right. its when you get into the middle of the p&l that you start to get problems at the bottom line. >> exactly right. sales rose 4%. if you look at currencies, it is
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up to 11%. when you start bringing it all back into euros, when you bring back your sales from russia in rubles, sales in japan as well, the yen really depreciating against the euro -- you get less bang for your euro. profit down 7%. not quite as bad as analysts have been expecting though. we are seeing the share price rise this morning. a sigh of relief that this company is weathering the storm and is expanding in emerging markets. spain, retail sales still very lackluster. they have to look to the faster growing economies. generally, this is a growth story. that is why they are rolling out in mexico and south korea. also, opening more stores. china.e teaming up with that is due to open later in the year. concerns going forward.
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what would the japanese sales tax hike mean for them? >> what i like to stay? dip but a rare profit it is not something for sales are still growing. discussion here. >> this time next year, the euro i know she is qualified. but to be chosen or not, it is is trading at 1.25 rather than not up to the minister. opec secretary general 1.35. we will be saying a different story. let's talk about hannah's. speaking as to whether or not they seem to be back on form. nigeria's candidate should >> it does. succeed him. the group has been deadlocked , an awful lotra over the years over who should take the top job at the cartel. of varying brands. was speaking to the h&m doing a similar thing, secretary-general of opec. rolling out labels, trying to let's pick up with him in vienna. look, i will not be watching get different parts of the market. the production ceiling. that will stay a 30 million barrels per day. that seems to be working. we know that the saudi's are being told quietly they should up reduction. also, mei was good to h&m. the real interesting thing there 19% increase in total sales. was the new secretary general what just took lace. -- lace. there was an extra saturday in the month. that was pretty nice.
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-- place. also, pentecost. when all the press are allowed they were able to splash the cash with weather turning a into the meeting and allowed to ask them questions of. little bit better. the calendar affects were stated year, one protester got in in the statement but investors are liking it nonetheless. there. he got in front of the nigerian they do seem to believe in the oil minister hand in front of h&m story. all of the cameras called her a crook. they feel that maybe they have i will watch heads rolet opec started to speed up the amount security. they can get their lines out how was this protester allowed into the stores, making their to get in there? the nigerians will not be happy about this. stores more appealing when you or is a very public campaign to walk in. you can breathe a little bit. lobby for her being appointed they are crowded with people but secretary general. this is not very helpful for that. >> just a sense of the value of they are trying to be less crowded with product. maybe it is starting to work out. opec. this is an organization that was h&m just catching up a little bit. once under pressure and seems to wellems to be doing pretty have come back from the dead. >> absolutely. today. >> thank you very much indeed, caroline hyde. tomorrow cup kicks off i was quoting mark twain earlier about how in the reports of my and it is not just the game that viewers will be watching, but death are an exaggeration. also the shoes. nike and adidas spend millions that is how the open minister's developing boots. feel here. the oil shale revolution was a
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for the purpose of this meant that -- of this next package, it is not enough to boots equals cleats. make this organization brandon shows us the big irrelevant. business of soccer boots. they still produce 40% of the world's oil. they have the majority of the >> that is cristiano ronaldo, the best talker player in the reserves. they are back in play. world. >> thank you very much indeed. im in madrid because nike wants ryan chilcote covering the opec me to see his new shoes. >> this is a giant leap. story for us. >> phil mccartney is the po that is it for the pulse. footwear for nike. >> a silo is an industry term. "surveillance" is up next. if you are in london and you are looking for a taxi between 2:00 and 3:00, you may need to take it is basically a line of shoes. >> i am curious about what nike something else. a taxi strike is taking place as called the silo approach. this is a specific cleat for one a result of uber. follow me on twitter. type of player. in the meantime, i will leave >> the modern game is designed around four playing styles. you in the capable hands of my that is how we orient our product. u.s. colleagues. thing about a player like "surveillance" will be up after this very short break. ronaldo. we can create a product based on see you tomorrow. ♪ our insight for him. >> at the world cup this summer,
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cristiano ronaldo will be wearing the super fly. a line of cleats is an expensive investment. any single player can blowout at me or have a bad year. in soccer, nike and adidas don't make a product around an athlete. they make a silo that they move an athlete into. when they get old or injured, there is a new player waiting. even nike admits they will probably never be air jordan's for shocker -- for soccer. >> is it possible for something to happen around a ronaldo soccer cleat the way the air jordan became something greater than a shoe? >> in football there is always rumors. when we can link product innovation to key roles, that is when the magic happens. >> what he means is no. adidas has four cleat styles but it started
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earlier in 1994 with the predator. got its predators on a kid, david beckham. launched aidas limited run of its predators silo in david beckham colors. they sold out at 723 euros a pair. ,oday adidas has lionel messi the other best player in the world. messi has his own logo but he doesn't have his own shoe. kid, youyou are a want to be the next zidana, the next messi. is my best friend's son at soccer practice in germany. >> messi. but he does or nike? >> i asked the kids whether messy where's adidas or nike. messihe kids think that
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where's adidas. half the kids think he wears nike. adidas? really matter that these kids don't know which shoes lionel messi wears. at this age, their parents by their cleats. when they have their own money, silos and player style will start to matter. until then, it is enough that adidas makes sure they know who lionel messi is. >> getting them on is the problem. and all american coming up, we are going to stay with the world cup spirit. taste going to give you a politics are stunned, the house when the pulse returns. majority leader is defeated in a ♪ primary. brings prodigious derivatives and executive skills to aig. and the oil rich northwest iraq falls to a breakaway al qaeda group good morning, this is "bloomberg surveillance." 11 and wednesday, june
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joining me to scarlet fu and adam johnson. it's a busy day. we had mixed a data overnight. u.k. had the lowest unemployment and the world bank cut its global growth forecast among weaker outlooks for the u.s., russia, and china. >> it has been a real jumble. we get retail sales tomorrow in the u.s. 7:00 we get the weekly mortgage applicable -- applications. at 2:00, the monthly budget report. with all the news coming out of
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>> welcome back. you are watching "the pulse." from london to madrid, thousands of taxi and limo drivers are on strike today. to keep uberng from encroaching on their turf. the car sharing service is one of many startups sparking a war between tradition and tech. you can't get any more traditional than a london taxi driver. to the cofounder of index ventures. a bit of an anomaly in the tech world coming from the u.s. over here. this in a moment.
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we have a great case in point here today in europe. it raises a number of different issues. let's talk first of all about disruption and the rate of change. this is a great case of disruption affecting an industry . the problem in my mind is the rate of change and how regulators keep up. is should we view what happening on the streets of london and madrid and everywhere else today? how should we look at that? >> i think we are going to see this every time one of these services gets to scale and starts to make a dent in the incumbent, whether it is somebody like uber or airbnb. or how strip, who is helping people rent rooms and to not go through the normal trembles -- normal channels of going through a hotel. , taxi case of uber drivers have been a monopoly for a long time. they recognize the convenience
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and the sheer beauty of the uber solution. they can't argue against that. what they are upset about is how fast this has been able to encroach on their turf and the fact that they don't seem to be regulated the way they are. >> is it a regulatory problem? is it that governments can't keep up with the rate of change? technology seems to be accelerating. or is it that individual taxi drivers can't keep up? >> i think it is both. i don't envy the regulators. this is not a simple problem to solve in the sense that, on the one hand they have to be open to new solutions like uber. on the other hand, they have to think about the vested interest and the laws that have been on the books for a long time. it is not going to happen overnight. >> do you think if it was a european company, people would take a different stance on it? out of sant coming
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francisco, wasn't coming out of the states. >> i don't think so. think that europe is good at developing this kind of technology? you are looking for opportunities. we were talking about the fact that it is rubbish at developing apps. what it is good that is financial technology, medical technology. have --ope somehow some somehow have some in current weakness? thesis for the firm we started in 1996, index ventures, was that great entrepreneurs can emerge anywhere. if you look at entrepreneurs in silicon valley, a large portion of them are first-generation americans who came from europe or asia. they have an american passport but they went to school outside of the united states. what we wanted to do was create infrastructure and an ecosystem
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that can support these entrepreneurs to realize the potential of their ideas wherever they emerge. we look at europe broadly and we think there are some tremendous applications and companies that are emerging in europe. >> are their strengths? core competency is something that certain cities have. have other core competencies. san francisco has a whole series of core competencies. it has infrastructure that allows that. bang fort the biggest your buck as a result of focusing on those? >> i think when we look at europe, we focus on four main geographies. is very strong in services and financial services as well. haven, the nordics which been strong in gaming and entertainment, and israel. those are the four nuclei for
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where these companies are starting but they can emerge anywhere. we have companies from portugal, spain, france, italy. what san francisco has as an edge is that there is a critical mass of big companies there. if your company needs to be in daily contact with engineers at facebook or google, then maybe your company should be based there. it doesn't mean it has to emerge there. >> if you were to rank the european city you listed, can you rank them? tel aviv seems to generate an awful lot of startup success. london less so, berlin just getting going. how does it work? >> everybody has their strengths and weaknesses. tel aviv is bury strong insecurity. not that strong in consumer facing applications. berlin is great at consumer facing applications and design. london is strong and professional services. scandinavia is just incredible
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at gaming. >> what is catching your eye right now? >> several things. one of the themes that is bury interesting for us is the whole notion that the mobile phone is becoming a remote control for your life. we talked about uber but there are other applications you can use your phone for well beyond communication. when consumers experience uber, we think they are going to expect that level of service in everything they do. companies are coming up with applications that will deliver that level of service in all walks of life. one of the great themes for the next fund we are investing is the fact that in the early days, the internet was all about selling digital goods and services. games and media, music, etc. now, those companies are attacking bigger sectors like health care, transportation, agriculture, financial services. >> and that is by other
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smartphone. itssmartphone has reached final form factor but we are using it as it ultimately should be. we have all got one. everybody seems to have access. talk to me about the pace of change. to understand what you have just said, it requires quite a big imagination. there are things we haven't even conceive that we want yet and companies have to work out what we want but don't know yet. how does it work? >> the platform is so powerful now that we are just getting to find applications that leverage the capabilities of those devices. the fact that they are ubiquitous means that they have a very big market. if you look at the sensors that are present in a phone, you can deliver health care. you can have a company that will be aware of how you are doing and when a certain condition might be triggered and intervene
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the way a therapist would in their office. we have a company called big health that is helping people with sleep disorders just by being on the phone and being aware of what your history is and how much you slept. >> we talked to a girl the other day about headphones and the potential to use those as biometric radius as well. thank you very much indeed for your time. let me bring you up to speed with some of the company news. lufthansa, one of the biggest losers on the stoxx 600. the airline has cut its earnings forecast this year and next. slidethe biggest stock since 2009 for lufthansa. the european commission will have a formal investigation into apple's iris tax arrangements. the broadcaster did not say where it got the information. ibm is nearing a deal with
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global foundries for its chip manufacturing business. the tech giant has searched for a buyer since last year. global foundries is mainly interested in acquiring ibm's ears and intellectual property. we are going to take a break. we are back in a couple of minutes. ♪
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>> good morning, everybody. welcome back. energy, carbon capturing storage may help seal and eu climate protection deal by october. that is according to the u.k. energy secretary. where will the cash come from? .et's ask matthew carr he joins us now from our new energy team. will they get a deal done by october? does this change the landscape a little bit? >> the big problem with getting a deal done in october is the use of coal going forward. what has happened over the past year, you have seen german emissions rise, polish emissions fall, and even the u.k.'s are on the rise. poland is feeling squeezed and it doesn't want the eu to be cutting emissions through 2030 or doing a deal now on cutting emissions through 2030.
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the u.k. is proposing to use ccs , carbon capture and storage technology which is very expensive but prices will come down. >> so this could be a big part of the deal. >> it could be a part of the deal. it is unclear to me how big it will be. the problem with carbon capture and storage is that it requires taking the carbon dioxide and using pipes to put it back down into the gas fields. that is quite expensive. deploying the technology may cut the cost in the future. >> what does this mean for a global deal? >> the global deal depends on .ow the u.s. treats china like poland, china wants to grow very much in the next few years. signalhe eu deal will how the u.s. will treat china in a global deal. >> thank you, nice to see you.
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matthew carr joining us from our new energy team. we are going to take a break. for our viewers, a second hour of "the pulse." we will be talking about lufthansa. ♪
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>> flying high no more. the listscratched price for the airbus. a slump on a profit warning for lufthansa. live. taxi jobbers hit the streets. -- drivers hit the streets. hasotest against uber london and elsewhere bracing for severe traffic. we are live on the scene.
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good morning to our bureaus in europe. -- viewers in europe. a warm welcome to those waking up in the united states. this is "the pulse." we are right here in london. brazilian booze could become a favorite of this year's world cup. aboutl speak exclusively how to get rid of graft. meetingpec nations discussing production limits. ryan chilcote is on the ground for us. the quota is never the. are it. we have just had the media scrum inside. what did we learn ? >> they cannot pump the oil fast enough.
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theconcern is that in second half of the year they may not be able to meet demand. it is a very different situation from six months ago. whenever concern they were exporting too much oil and with ,he american shale revolution there would be a depression in price. no one is talking about that. come on.s, on -- has this is the result of some supply disruption. six months ago, they thought the likes of iraq, iran, and libya would come back online. now they are not so sure. the second biggest city in iraq, in general, the chaos that we are seeing in iraq is concerning people in iraq possibility --
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raq's ability to come back online. speak withance to oil minister from the uae yesterday. we cannot say when things will be finalized. it is a complicated issue. >> libya is a problem as well. is exporting only a 10th of what it can because of infighting in that country, not
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being able to get the oil out of the ports. the still locked out of international oil market because of sanctions. anian oil minister does not have a sense of when the sanctions might end or be lifted. we just spoke with the saudi oil minister. assaid, we can dump as much 12.5 million barrels -- pump as much as 12.5 million barrels. i think that is the feeling. waiting twoeen years. any word on who is going to be the new secretary general? nigeria has been pushing their candidate. she is the first female oil minister. she is in the running for the job.
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the secretary general, the top job. the public face of opec, the one is -- who is supposed to bridge a difference. in a way, that would really help. none of the candidates for iraq, iran, and libya can agree. a secretary-general from nigeria would allow them to be above the divide. but there are concerns specifically about whether she is the right person, whether she has the credibility, and the support from all of the members that build that kind of consensus when the make difficult decisions, like to cut production, which means taking their hands out of the cookie jar and not collecting as much
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oil revenue. as for herself, we spoke to her yesterday. clearly she would be delighted if she got the job. >> frankly, that would be a privilege. however, i am not the secretary general of opec. it is not on the agenda at this point in time. the ministers tell us they will not decide on that today. they will decide on that in december. the secretary general will remain for at least another six months. >> ryan chilcote joining us from outside opec in vienna. let's go from oil to airlines. emirates pulled a pressure -- pulled the plug on airbus. the carrier canceled its entire order. we have also had news from
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lufthansa, which has cut its operating profit forecast for this year and next year, down hard on that news. let's wrap it up with chris jasper from bloomberg news. why has emirates canceled its order from airbus? >> it is a feeling they were never very enthusiastic about this model to start with. emirates has of been fairly forthright in biggestng that the model, in particular, does not really do it for them. thehat sense, it is not greatest surprise. i think we thought that it would continue to push them until he got the plane he wanted. these orders were not going to be delivered until 2019. there was a lot of evolution that will go on. thatrn out of frustration airbus is not moving quickly enough? >> certainly. he has long been saying that.
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i don't think anyone thought it had got to the stage where we thought this would happen. there were no smoke signals. there have already been calls slotsbus looking for the that emirates is vacating. this is still a very desirable aircraft. >> it is. with all sorts of weight saving materials. it is going to offer 15% fuel consumption improvement. airlines certainly want this. it is not something as fast as the 787 has sold. it is going to be pressurized from the top by boeing's three engined 777x. ordersis ready to take
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for that plan and emirates is going to be the biggest customer. >> let's talk about lufthansa. slashing 2014, 2015 targets. north atlantic routes have overcapacity. they're reviewing flexibility and aircraft orders. the main problem here is strike. they have other issues as well. >> that is one of the problems. interestingly, the jury for to the pressure -- they do refer to the pressure. the pilot strike has cost them 60 million euros. they're struggling to repack treat moneys owed. -- repatriate moneys owed. --y say they have real times problems with what the gulf carriers are doing. >> this is not a lufthansa specific issue. the other carriers complained
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initially. most have found a way of living with the gulf carriers. british airways cozied up to qatar air. whereas lufthansa try to put something together with turkish airlines, which is somewhat of a default gulf carrier, but that fell through and the standalone in this rather -- a war of words the new ceo,spohr, embarked upon soon after taking gulf when he talked about carriers being state owned and having certain advantages. it seems that the statement today, well it does strike at other things, make it clear that there is a structural issue for them when responding to the gulf challenge. they are trying to introduce better cabin products, new seats. that is not going to be enough
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intake on three major hubs the gulf that are just bleeding traffic away from frankfurt. >> chris, lots going on. i think there will be lots of news. we will both be busy. chris jasper joining us from bloomberg news. let's stay with transportation. the standoff between traditional taxis and car sharing services is stopping traffic in london and elsewhere today. or than 300,000 taxi and limo drivers in london are protesting against uber. olivia, you have been speaking to the london black cab be representative -- cabbie representative. talk to us about what he said is going to happen today. 2:00 p.m., at thousands of taxi drivers are expected to descend on trafalgar circling theart
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area from trafalgar square down to parliament square, whitehall, and drive around and cause chaos and cause gridlock. these are main arteries of central london. this could cause a lot of problems getting through the city. he had just come back from scotland yard. he is told he will be arrested. he is undeterred by that. they have rolled over and let them get away with it. we say it is because of uber's $18 billion, and enormous amount of political influence. there is a $17 billion valuation. but this is just a start up company that is just a few years old. beenit's valuation has driven by consumer demand and technological innovation. he dismissed that.
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he said his gripe is with gfl. he said the taxi service is operating illegally as a mini cap. -- cab. thority istory au making them jump through hoops, while uber is getting away scott free. i think we seem to have a strike in our communication service down to trafalgar square. technology always seems to get in our way one way or another. we will take a break. we will fix it during a break. we're back in a couple of minutes. ♪
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>> everything is in good order. supply is good. capacity say we have a problem? don't you believe us? saudi oil minister speaking to us a few minutes ago. they always have this media scrum just before the meeting. you get in there, you get your camera, you put it in their face. everybody is doing the same thing. always entertaining to watch. ryan chilcote on the ground, in the room for us. let's head back over to vienna to hear from him. atkinson,ined by neil
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a guy who has been coming to opec meetings for more than 20 years. clearly alexa fanfare. let's talk about the saudi oil minister. a a's up with showing up of hours before the meeting? normally he comes a couple of days before. what does this say about the portions of this meeting? -- the importance of this meeting? >> does not really matter. no changes going to be made. there was not much else to talk about in terms of the formal meeting. he has been known over the years for a little bit of impatience. he will be back to the airport after the meeting today. daddy of the meeting. the expectation is that while they will keep the ceiling, everybody wants saudi arabia to pump more oil because opec will
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struggle in the second half of the year. iswhat we are being told that the expectation for demand growth has been different than expected, we have not as much supply growth from the non-opec countries. .ess oil from iraq military trouble in iraq. exportsthe iranian coming back. stronger demand, weaker supply than expected. it is thought that opec collectively will have to pump a little bit more oil than the current ceiling in the second half of the year. in practice, the only guys who can do that are the saudi's. >> any opec minister here today my say the same thing about the cartel. non-opec growth has been disappointing. the american shale revolution
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was thought to kill the relevancy of the cartel. is the cartel still relevant? >> of course it is. years,a that in five
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